Givaudan SA Overview - Givaudan SA is one of 238 individual stocks in the Basic Materials sector, which ranks 11 out of 16 sector groups in the Zacks Sector Rank [2] - The company currently holds a Zacks Rank of 1 (Strong Buy), indicating a strong earnings outlook and potential for market outperformance over the next one to three months [3] - Givaudan SA has returned 13.7% year-to-date, significantly outperforming the Basic Materials sector average loss of 4.5% [4] Earnings and Analyst Sentiment - The Zacks Consensus Estimate for Givaudan SA's full-year earnings has increased by 14.3% over the past quarter, reflecting improving analyst sentiment [4] - The company's strong performance is attributed to its positive earnings outlook and favorable earnings estimate revisions [3] Industry Performance - Givaudan SA operates in the Chemical - Specialty industry, which includes 33 companies and ranks 72 in the Zacks Industry Rank [6] - The Chemical - Specialty industry has lost 19.2% year-to-date, making Givaudan SA's 13.7% return particularly notable [6] Comparison with Avino Silver - Avino Silver, another Basic Materials stock, has returned 98.5% year-to-date, significantly outperforming both Givaudan SA and the sector average [5] - Avino Silver's consensus EPS estimate for the current year has increased by 25% over the past three months, and it also holds a Zacks Rank of 1 (Strong Buy) [5] - Avino Silver belongs to the Mining - Silver industry, which ranks 11 and has gained 31.6% year-to-date [6] Investment Consideration - Investors interested in Basic Materials stocks should monitor both Givaudan SA and Avino Silver due to their strong performance and positive earnings outlooks [7]

Financial Data and Key Metrics - Group sales for H1 2024 reached CHF 3.7 billion, a 12.5% like-for-like growth and 5.7% in Swiss francs [4] - Comparable EBITDA amounted to CHF 929 million, with an EBITDA margin of 24.8%, up from 22.7% in 2023 [4] - Net income increased by 30.9% to CHF 588 million, and free cash flow was CHF 197 million, representing 5.3% of sales [4][19] - Net debt to EBITDA improved to 2.9x from 3.7x in June 2023 [19][27] Business Line Performance - Fragrance & Beauty division grew 15.3% like-for-like, with sales of CHF 1.826 billion, driven by Fine Fragrance and Consumer Products [11] - Taste & Wellbeing division grew 9.9% like-for-like, with sales of CHF 1.8 billion, driven by strong performance in snacks, beverages, and dairy [12] - Fragrance Ingredients and Active Beauty sales increased 8% like-for-like, with strong demand for regional specialties [11] Market Performance - High-growth markets grew 20.5% like-for-like, representing 46% of total sales, with strong double-digit growth in China, Southeast Asia, and Latin America [6][9] - Mature markets grew 6% like-for-like, led by Europe and a recovery in North America [7] - Latin America showed the highest growth at 31.5% like-for-like, driven by FX pricing in Argentina [9] Strategy and Industry Competition - The company is focused on expanding its portfolio, customer reach, and market strategies, with recent acquisitions like B kolor in Italy [29][30] - Innovation remains a key driver, with new product launches in Fragrance & Beauty and Taste & Wellbeing, leveraging biotechnology and digitalization [13][14][15] - The company aims for 4-5% like-for-like sales growth and free cash flow above 12% over the 5-year strategic cycle [30] Management Commentary on Operating Environment and Outlook - Management highlighted strong volume growth across all markets and segments, driven by consumer demand and new product wins [3][4] - The company expects minor input cost increases but remains focused on operational excellence and footprint optimization [32] - The outlook for 2024 includes continued growth, with expected costs of CHF 50 million related to the performance improvement program [32] Other Important Information - CFO Tom Hallam will retire, with Stewart Harris taking over effective August 1, 2024 [2] - The company incurred CHF 23 million in costs related to footprint optimization and litigation in the fragrance industry [22] Q&A Session Summary Question: Margin Seasonality and Volume Growth [35] - Margins are typically stronger in H1 due to fewer invoicing days in December, with a historical 100 bps difference between H1 and full-year margins [36] - Fragrance & Beauty margins are strong due to operational leverage and portfolio churn, while Taste & Wellbeing margins are expected to improve over the next 18 months [37][61] - Volume growth is driven by underlying demand, with no significant restocking observed [40][43] Question: Pet Care and Packaged Food Market [49] - The company has potential interest in pet food innovation but no immediate acquisition plans [51] - Packaged food volumes are recovering, with a focus on health and wellness trends, though the market remains challenging [52][53] Question: Taste & Wellbeing Margin and FX Impact [56] - Taste & Wellbeing margins are weaker due to raw material inflation and lower operational leverage, but improvements are expected over the next 18 months [60][61] - FX pricing in Argentina contributed 2.9% to growth in H1, with expectations of 2-2.5% for the full year if the peso remains stable [63] Question: Nonoperating Income and Footprint Optimization [66] - Nonoperating income was CHF 30 million in H1, with expectations of CHF 45 million for the full year, driven by FX gains [67] - The company is optimizing its manufacturing footprint, with more announcements expected in the coming months [68] Question: North America Market and Cost Savings [70] - North America showed positive growth in Taste & Wellbeing, with a focus on retail channels and health-focused products [71][78] - The company expects to achieve a sweet spot of 22-24% EBITDA margin over the next 18 months [79] Question: Raw Material Procurement and Capital Allocation [80] - The company has a diversified raw material procurement strategy, with a focus on building alternative supply chains to mitigate geopolitical risks [81][82] - Capital allocation priorities include returning cash to shareholders, bolt-on acquisitions, and investments in local and regional clients [85][86] Question: Beverages and Consumer Products Growth [89] - Beverages showed double-digit growth, driven by Givaudan's strong positioning and health-focused innovations [91] - Consumer Products growth is supported by increased fragrance dosage levels and technological advancements in fabric care [92][94]

Earnings Estimate Revisions and Zacks Rank - Givaudan SA has been upgraded to a Zacks Rank 1 (Strong Buy), reflecting an upward trend in earnings estimates, which is a powerful force impacting stock prices [1][4] - The Zacks Consensus Estimate for Givaudan has increased by 5.3% over the past three months, indicating steady upward revisions by analysts [6] - The Zacks Rank system, which relies solely on earnings estimate revisions, has a proven track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [12] Givaudan's Earnings Outlook - Givaudan's upgrade to Zacks Rank 1 positions it in the top 5% of Zacks-covered stocks, suggesting potential for near-term stock price appreciation [8] - The company is expected to earn $2.59 per share for the fiscal year ending December 2024, representing a year-over-year change of 19.9% [13] - The positive earnings outlook, as reflected in the Zacks upgrade, could have a favorable impact on Givaudan's stock price [10] Institutional Influence and Stock Price Movement - Changes in earnings estimates are strongly correlated with near-term stock price movements, partly due to the influence of institutional investors who use these estimates to calculate fair value [11] - Institutional investors' bulk investment actions, driven by changes in earnings estimates, lead to price movements for the stock [11]

Givaudan SA (GVDNY) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The ...

Givaudan SA (OTCPK:GVDBF) Q4 2023 Earnings Conference Call January 25, 2024 9:00 AM ET Company Participants Gilles Andrier - Chief Executive Officer Tom Hallam - Chief Financial Officer Conference Call Participants Celine Pannuti - JPMorgan Chase & Co. Nicola Tang - BNP Paribas Exane Arben Hasanaj - Vontobel Gunther Zechmann - AllianceBernstein Daniel Buerki - Zürcher Kantonalbank Operator Ladies and gentlemen, welcome to the Givaudan 2023 Full Year Results Conference Call and Live Webcast. I am Sanda, the ...

Givaudan SA (OTCPK:GVDBF) Q2 2023 Earnings Conference Call July 20, 2023 9:00 AM ET Company Participants Gilles Andrier - Chief Executive Officer Tom Hallam - Chief Financial Officer Conference Call Participants Daniel Buerki - Zürcher Kantonalbank Celine Pannuti - JPMorgan Chase & Co. Charles Eden - UBS Nicola Tang - BNP Paribas Exane Lisa De Neve - Morgan Stanley Isha Sharma - Stifel Europe Bank AG Matthew Yates - Bank of America Merrill Lynch Operator Ladies and gentlemen, welcome to the Givaudan 2023 Ha ...

20 JULY 2023 2023 Half year results Conference call for Investors and Analysts Givaudan Human by nature Sales performance Gilles Andrier Chief Executive Officer 2023 Half year results Solid Business Performance • Sales of CHF 3,535 million, an increase of 2.4% on a like-for-like* basis and a decrease of 3.2% in Swiss francs • Strong sales performance in high growth markets, in Europe and in Fine Fragrances • Performance improvement initiatives are well on track with first results already delivered • EBITDA ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|------------------------|-------|---------------------------------------------------------|-------|-------| | | | | | | | | 25 January 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2022 Full Year Results | | Solid business performance in a challenging environment | | | | | | | | | | | | | | | | | | | | | | | | | | | ...

Givaudan SA (OTCPK:GVDBF) Q4 2022 Earnings Conference Call January 25, 2023 9:00 AM ET Company Participants Gilles Andrier - Chief Executive Officer Tom Hallam - Chief Financial Officer Conference Call Participants Heidi Vesterinen - EXANE BNP Paribas Charles Eden - UBS Isha Sharma - Stifel Matthew Yates - Bank of America Lisa De Neve - Morgan Stanley Operator Ladies and gentlemen, welcome to the Givaudan 2022 Full-Year Results Conference Call and Live Webcast. I am Andre, the Chorus Call operator. I would ...

Givaudan's (OTCPK:GVDBF) Q2 2022 Earnings Conference Call July 21, 2022 9:00 AM ET Company Participants | --- | |-------------------------------------------------------------------------------------------------------------| | | | Gilles Andrier - Chief Executive Officer Tom Hallam - Chief Financial Officer | | Conference Call Participants | | Heidi Vesterinen - EXANE BNP Paribas Charles Eden - Union Bank of Switzerland Lisa De Neve - Morgan Stanley | | James Targett - Berenberg | | Matthew Yates - Bank of A ...